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A3258 1R
[First Reprint]
ASSEMBLY, No. 3258
STATE OF NEW JERSEY
222nd LEGISLATURE
�
PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION
Sponsored by:
Assemblyman DAN HUTCHISON
District 4 (Atlantic, Camden and Gloucester)
Assemblyman CODY D. MILLER
District 4 (Atlantic, Camden and Gloucester)
Assemblyman DAVID BAILEY, JR.
District 3 (Cumberland, Gloucester and Salem)
Co-Sponsored by:
Assemblywomen Katz and Brennan
SYNOPSIS
���� Prohibits sports wagering licensees from offering micro
bets online; establishes penalties.
CURRENT VERSION OF TEXT
���� As reported by the Assembly Tourism, Gaming and the
Arts Committee on June 1, 2026, with amendments.
��
An Act
prohibiting sports wagering licensees from offering
micro bets
1
online
1
and amending P.L.2018, c.33.
����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:
���� 1.��� The Legislature finds
and declares that:
���� a.���� Sports wagering has
been highly successful since being legalized in New Jersey in 2018.
���� b.��� Over the last several
years, sportsbooks have developed new methods of wagering which are more
enticing and engaging for bettors, but carry additional risks to the bettor�s
health and well-being, and the integrity of sports more broadly.
���� c.���� One new and
increasingly popular method of wagering is called micro betting.� A micro bet
allows a bettor to wager on the outcome of the very next play or action to
occur in a game.� An example of a micro bet would be a wager that the next
pitch to be thrown in a baseball game is going to be a strike.
���� d.��� Because of the rapid
speed of many sporting events, and therefore the speed at which bets can be
placed and settled, micro bets provide a method for fans to stay engaged in
every play.� Consequently, betters have less time to research and consider the
details of their wagers before placing them, and bettor losses can accumulate
quickly.
���� e.���� The speed at which
micro bets progress can also lead to problem gambling, as the bets offer the
possibility of a near immediate reward to the bettor.� This is especially
concerning as problem gambling is already on the rise in this State and across
the country.
���� f.���� The National Council on
Problem Gambling estimates that as many as 8 million people nationwide suffer
from problem gambling, and the Council on Compulsive Gambling of New Jersey has
reported a 277 percent spike in calls to their problem gambling helpline since
the legalization of sports wagering.
���� g.��� Professional athletes,
in particular, are at increased risks of exhibiting signs of problem gambling.�
Some studies estimate that 57 percent of professional athletes may wager on
sports, with roughly 8 percent being considered problem gamblers.� This is not
only concerning for the mental health of athletes, but also for the integrity
of sports more broadly.
���� h.��� Micro bets, which
concern the outcome of one particular play or action, are easier to fix than
many more traditional forms of wagering.� As a result, micro bets may be
especially enticing to athletes who are already struggling with problem
gambling.� There have been several reported cases of professional athletes
being investigated for altering their performance to meet the terms of wagers
on a micro bet.�
���� i.���� Problem gambling,
whether it be amongst professional athletes or the general population, is cause
for concern.� Problem gambling contributes to mental health decline,
joblessness, and instability, and raises costs on individuals, families, and
communities.� The National Council on Problem Gambling estimates that the total
social cost of problem gambling could be as high as $14 billion per year.�
Accordingly, any practice that may contribute to problem gambling in this State
must be addressed.
���� j.���� In order to safeguard
the integrity of sports and preserve the health and well-being of our citizens,
this act would prohibit sportsbooks from offering micro bets in New Jersey.
���� 2.��� Section 1 of P.L.2018,
c.33 (C.5:12A-10) is amended to read as follows:
���� 1.��� As used in this act:
���� "Casino" means a
licensed casino or gambling house located in Atlantic City at which casino
gambling is conducted pursuant to the provisions of P.L.1977, c.110 (C.5:12-1
et seq.).
���� "Commission" means
the Casino Control Commission established pursuant to section 50 of P.L.1977,
c.110 (C.5:12-50).
���� "Collegiate sport or
athletic event" means a sport or athletic event offered or sponsored by or
played in connection with a public or private institution that offers
educational services beyond the secondary level.
���� "Division" means the
Division of Gaming Enforcement established pursuant to section 55 of P.L.1977,
c.110 (C.5:12-55).
���� "Former racetrack"
means any former racetrack where a horse race meeting was conducted within 15
years prior to the effective date of P.L.2014, c.62 (C.5:12A-7 et seq.),
excluding premises other than the land contained within the racecourse oval.
���� "Internet sports pool
operator" means an entity that is licensed as a casino service industry
enterprise pursuant to section 92 of P.L.1977, c.110 (C.5:12-92).
���� �
Micro bet� means a
proposition bet which is wagered live, while a sport or athletic event is
ongoing, and concerns the outcome of the next play or action occurring in the
sport or athletic event.
���� "Online sports pool"
means a sports wagering operation in which wagers on sports events are made
through computers or mobile or interactive devices and accepted at a sports
wagering lounge through an online gaming system which is operating pursuant to
a sports wagering� license issued by the division or racing commission pursuant
to P.L.2018, c.33 (C.5:12A-10 et al.).
���� "Operator" means a
casino or a racetrack which has elected to operate a sports pool, either
independently or jointly, and any entity with whom a casino or racetrack
licensed to operate a sports pool contracts to operate a sports pool or online sports
pool, including an Internet sports pool operator, on its behalf.
���� "Professional sport or
athletic event" means an event at which two or more persons participate in
sports or athletic events and receive compensation in excess of actual expenses
for their participation in such event.
���� "Prohibited sports
event" means any collegiate sport or athletic event that takes place in
New Jersey or a sport or athletic event in which any New Jersey college team
participates regardless of where the event takes place.� A "prohibited sports
event" does not include the other games of a collegiate sport or athletic
tournament in which a New Jersey college team participates, nor does it include
any games of a collegiate tournament that occurs outside New Jersey even though
some of the individual games or events are held in New Jersey.� A�
"prohibited sports event" includes all high school sports events.� A
"prohibited sports event" includes electronic sports and competitive
video games� that are sponsored by or affiliated with a high school or
electronic sports and competitive video games and tournaments in which a
majority of the competitors are under 18 years of age.� A "prohibited
sports event" does not include� sports, electronic sports, or competitive
video game events in which persons under age 18 make up a minority of the
participants.
����
�Proposition bet� means a
side wager on a part of a sport or athletic event that does not concern the
final outcome of the sport or athletic event.
���� "Racetrack" means
the physical facility and the land, as of the effective date of P.L.2018, c.33
(C.5:12A-10 et al.), where a permit holder conducts a horse race meeting with
wagering under a license issued by the racing commission pursuant to P.L.1940,
c.17 (C.5:5-22 et seq.), and includes any former racetrack.
���� "Racing Commission"
means the New Jersey Racing Commission established by section 1 of P.L.1940,
c.17 (C.5:5-22).
���� "Sports event" means
any professional sport or athletic event, any Olympic or international sports
competition event and any collegiate sport or athletic event, or any portion
thereof, including, but not limited to, the individual performance statistics
of athletes in a sports event or combination of sports events, except
"sports event" shall not include a prohibited sports event or a
fantasy sports activity, as defined in section 2 of P.L.2017, c.231
(C.5:20-2).� A "sports event" shall include any live competition or
talent contest, including awards competitions and competitive eating contests.
���� "Sports pool" means
the business of accepting wagers on any sports event by any system or method of
wagering, including but not limited to single-game bets, teaser bets, parlays,
over-under, moneyline, pools, exchange wagering, in-game wagering, in-play
bets, proposition bets, and straight bets.
���� "Sports wagering
lounge" means an area wherein a licensed sports pool is operated located
in a casino hotel or racetrack.
(cf: P.L.2021, c.286, s.2)
���� 3.��� Section 2 of P.L.2018,
c.33 (C.5:12A-11) is amended to read as follows:
���� 2. a. The division shall issue
all sports wagering licenses and renewals thereof to casinos.� The racing
commission shall issue all initial sports wagering licenses to racetracks but
the division shall have responsibility for the renewal thereof.� In addition to
casino games permitted pursuant to the provisions of P.L.1977, c.110 (C.5:12-1
et seq.), a casino which holds a sports wagering license issued by the division
may operate a sports pool in accordance with the provisions of this act and
applicable regulations promulgated pursuant to this act.� A racetrack which
holds an initial sports wagering license issued by the racing commission or a
sports wagering license that has been renewed by the division may operate a
sports pool in accordance with the provisions of this act and applicable
regulations promulgated pursuant to this act.
���� The division may issue a
transactional waiver to allow the continued operation of an established sports
wagering lounge and authorization to conduct up to three online sports wagering
operations when a racetrack that holds a license issued by the racing commission
pursuant to P.L.1940, c.17 (C.5:5-22, et seq.) undergoes a material change in
ownership to a degree such that it would be required to file a new application
with the racing commission in order to continue to operate pursuant to
P.L.1940, c.17 (C.5:5-22 et seq.).� A transactional waiver issued pursuant to
this section shall be for an initial period of up to six months and may be
renewed during the pendency of the racing commission's consideration of a new
application for up to three one-year periods, but the division shall have the
right to reexamine and rescind the grant of the waiver at any time.
���� A racetrack at which a permit
holder has scheduled a standardbred horse race meeting within one year
preceding the effective date of P.L.2018, c.33 (C.5:12A-10 et al.) and that met
the definition of a racetrack under P.L.2018, c.33 (C.5:12A-10 et al.) on the
effective date thereof:
���� shall not be permitted to hold
a sports wagering license as a former racetrack on or after the effective date
of P.L.2021, c.350, and
���� shall, as a condition of
holding a sports wagering license after the effective date of P.L.2021, c.350,
schedule annually no fewer than 151 standardbred race dates, except that the
annual number of scheduled standardbred race dates may be decreased to no fewer
than 75 standardbred race dates upon written consent from the Standardbred
Breeders' and Owners' Association of New Jersey.
���� A casino which holds a sports
wagering license and a racetrack which holds a sports wagering license may
enter into an agreement to jointly operate a sports pool at the racetrack, in
accordance with the provisions of this act and applicable regulations promulgated
pursuant to this act.� A casino or racetrack that holds a sports wagering
license may conduct an online sports pool or may authorize an internet sports
pool operator licensed as a casino service industry enterprise pursuant to
section 92 of P.L.1977, c.110 (C.5:12-92), or an applicant for such license, to
operate an online sports pool on its behalf provided the terms of the agreement
are approved by the division; provided, however, that each sports wagering
licensee may provide no more than three individually branded websites, each of
which may have an accompanying mobile application bearing the same brand as the
website for an online sports pool, those websites and mobile applications, in
the case of a casino being in addition to or, in the discretion of the casino,
in conjunction with, any websites and mobile applications that also offer other
types of Internet gaming pursuant to P.L.2013, c.27 (C.5:12-95.17 et seq.).� No
online sports pool shall be opened to the public, and no sports wagering, except
for test purposes, may be conducted therein, until an Internet sports pool
operator receives approval from the division to conduct an online sports pool
on behalf of a casino or racetrack that holds a sports wagering license.�
Sports wagering licensees and operators may provide promotional credits,
incentives, bonuses, complimentaries, or similar benefits designed to induce
sports betters to wager.� The division, in consultation with the commission,
shall establish by rule standards governing the provision of these measures.�
The server or other equipment used by a racetrack to accept wagers at a sports
pool or online sports pool shall be located in that racetrack or in any
location in Atlantic City which conforms to the requirements of section 20 of
P.L.2013, c.27 (C.5:12-95.22) and any additional requirements which the
division may impose by regulation.� The server or other equipment used by a
casino to accept wagers at a sports pool or online sports pool shall conform to
the requirements of section 20 of P.L.2013, c.27 (C.5:12-95.22) and any
additional requirements which the division may impose by regulation.
���� With regard to this act,
P.L.2018, c.33 (C.5:12A-10 et al.), the duties specified in section 63 of
P.L.1977, c.110 (C.5:12-63) of the Casino Control Commission shall apply to the
extent not inconsistent with the provisions of this act.� In addition to the
duties specified in section 76 of P.L.1977, c.110 (C.5:12-76), the division or
racing commission, as required pursuant to this act, shall hear and decide
promptly and in reasonable order all applications for a license to operate a
sports pool.� In addition to the duties specified in section 76 of P.L.1977,
c.110 (C.5:12-76), the division shall have the general responsibility for the
implementation of this act, except with respect to the authority to issue
sports wagering licenses to a racetrack as provided by this act, and shall have
all other duties specified in that section with regard to the operation of a
sports pool.
���� The license to operate a
sports pool shall be in addition to any other license required to be issued
pursuant to P.L.1977, c.110 (C.5:12-1 et seq.) to operate a casino or pursuant
to P.L.1940, c.17 (C.5:5-22 et seq.) to conduct horse racing.� The division and
the racing commission shall each have the authority to charge a casino or a
racetrack a fee for the issuance or, in the case of the division renewal, of a
sports wagering license in an amount of $100,000 for initial issuance and in
the case of a renewal a reasonable fee that is based upon the expense
associated with renewal, enforcement, and gambling addiction programs.� No
sports wagering license shall be issued by the division or racing commission to
any entity unless it has established its financial stability, integrity and
responsibility and its good character, honesty and integrity.� No casino or
racetrack shall be permitted to operate a sports pool or accept wagers via an
online sports pool unless a sports wagering lounge is established and has commenced
operation in its facility; provided, however, that an applicant for a sports
wagering license may petition the agency issuing the sports wagering license
pursuant to this act to commence operation of the sports pool at a temporary
facility and/or an online sports pool during the pendency of construction of a
sports wagering lounge in its facility.� Such temporary facility may include,
at the discretion of the agency issuing the sports wagering license pursuant to
this act, the utilization of designated windows at the current casino cage or
racetrack betting window for purposes of placing sports betting wagers and
self-service wagering machines located at the racetrack or casino hotel
complex.� No license to operate a sports pool shall be issued to any entity
which is disqualified under the criteria of section 86 of P.L.1977, c.110
(C.5:12-86).
���� No later than five years after
the date of the issuance of a license and every five years thereafter or within
such lesser periods as the agency issuing the sports wagering license pursuant
to this act may direct, a licensee shall submit to the said agency such
documentation or information as the division or racing commission may by
regulation require, to demonstrate to the satisfaction of the agency that the
licensee continues to meet the requirements of the law and regulations.
���� The division and the racing
commission following consultation with the sports wagering licensees shall
annually cause a report to be prepared and distributed to the Governor on the
impact of sports wagering, including Internet wagering on sports events, on
problem gamblers and gambling addiction in New Jersey.� The report shall be
prepared by a private organization or entity with expertise in serving the
needs of persons with gambling addictions, which organization or entity shall
be selected jointly by the division and the racing commission.� The report
shall be prepared and distributed under the supervision of, and in coordination
with, the division and the racing commission.� Any costs associated with the
preparation and distribution of the report shall be borne by casino and
racetrack licensees who have been authorized by the division or the racing
commission to conduct Internet gaming and the division and the racing
commission shall be authorized to assess a fee against such licensees for these
purposes.� The division and the racing commission may also report periodically
to the Governor on the effectiveness of the statutory and regulatory controls
in place to ensure the integrity of gaming operations through the Internet.
���� b.��� A sports pool shall be
operated in a sports wagering lounge located at a casino or racetrack.� A
sports wagering lounge may be located at a casino simulcasting facility.� The
lounge shall conform to all requirements concerning square footage, design, equipment,
security measures and related matters which the division shall by regulation
prescribe.� The space required for the establishment of a lounge shall not
reduce the space authorized for casino gaming activities as specified in
section 83 of P.L.1977, c.110 (C.5:12-83).
���� c.���� No sports pool or
online sports pool shall be offered or made available for wagering to the
public by any entity other than a sports wagering licensee, pursuant to
P.L.2018, c.33 (C.5:12A-10 et al.), an applicant for such license, operating
such pool on behalf of a licensee, or an Internet sports pool operator, on
behalf of a sports wagering licensee.� Any person who offers a sports pool or
an online sports pool without approval of the division or racing commission to
do so is guilty of a crime of the fourth degree and notwithstanding the
provisions of N.J.S.2C:43-3, shall be subject to a fine of not more than
$25,000 and in the case of a person other than a natural person, to a fine of
not more than $100,000 and any other appropriate disposition authorized by
subsection b. of N.J.S.2C:43-2.
���� d.��� The operator shall
establish or display the odds at which wagers may be placed on sports events.
���� e.���� An operator shall
accept wagers on sports events only from persons physically present in the
sports wagering lounge; through self-service wagering machines located in its
facility as authorized by the agency issuing the sports wagering license; or
through an online sports pool.� A person placing a wager on a sports event
shall be at least 21 years of age.
���� f. (1) Any person who is:
���� an athlete, coach, referee, or
director of a sports governing body or any of its member teams;
���� a sports governing body or any
of its member teams;
���� a player or a referee
personnel member, in or on any sports event overseen by that person's sports
governing body based on publicly available information;
���� a person who holds a position
of authority or influence sufficient to exert influence over the participants
in a sporting contest, including but not limited to coaches, managers,
handlers, athletic trainers, or horse trainers;
���� a person with access to
certain types of exclusive information on any sports event overseen by that
person's sports governing body based on publicly available information; or
���� a person identified by any
lists provided by the sports governing body to the division and the racing
commission,
���� shall not be permitted to have
any ownership interest in, control of, or otherwise be employed by an operator,
a sports wagering licensee, or a facility in which a sports wagering lounge is
located or place a wager on a sports event that is overseen by that person's
sports governing body based on publicly available information.
���� Any employee of a sports
governing body or its member teams who is not prohibited from wagering on a
sports event shall, nevertheless, provide notice to the division prior to
placing a wager on a sports event.� The direct or indirect legal or beneficial owner
of 10 percent or more of a sports governing body shall not place or accept any
wager on a sports event in which any member team of that sports governing body
participates.� The direct or indirect legal or beneficial owner of 10 percent
or more of a member team of a sports governing body shall not place or accept
any wager on a sports event in which that member team participates.� Any person
who violates this paragraph shall be guilty of a disorderly persons offense and
shall be fined not less than $500 and not more than $1,000.
���� (2)�� The prohibition set
forth in paragraph (1) of this subsection shall not apply to any person who is
a direct or indirect owner of a specific sports governing body member team and
(i) has less than 10 percent direct or indirect ownership interest in a casino
or racetrack or (ii) the shares of such person are registered pursuant to
section 12 of the Securities Exchange Act of 1934, as amended (15 U.S.C.
s.78l), and the value of the ownership of such team represents less than one
percent of the person's total enterprise value.
���� (3)�� An operator shall adopt
procedures to prevent persons from wagering on sports events who are prohibited
from placing sports wagers.� An operator shall not accept wagers from any
person whose identity is known to the operator and:
���� whose name appears on the
exclusion list maintained by the division pursuant to section 71 of P.L.1977,
c.110 (C.5:12-71);
���� whose name appears on any
self-exclusion list maintained by the division pursuant to sections 1 and 2 of
P.L.2001, c.39 (C.5:12-71.2 and C.5:12-71.3, respectively);
���� who is the operator, director,
officer, owner, or employee of the operator or any relative thereof living in
the same household as the operator;
���� who has access to nonpublic
confidential information held by the operator; or
���� who is an agent or proxy for
any other person.
���� (4)�� An operator shall adopt
procedures to obtain personally identifiable information from any individual
who places any single wager in an amount of $10,000 or greater on a sports
event while physically present in a racetrack facility or a casino.
���� Sections 1 and 2 of P.L.2002,
c.89 (C.5:5-65.1 and C.5:5-65.2, respectively) shall apply to the conduct of
sports wagering under this act.
���� g.��� The holder of a sports
wagering license may contract with an entity to conduct that operation, in
accordance with the regulations of and approval by the division.� That entity
shall obtain a license as a casino service industry enterprise prior to the execution
of any such contract, and such license shall be issued pursuant to the
provisions of P.L.1977, c.110 (C.5:12-1 et seq.) and in accordance with the
regulations promulgated by the division in consultation with the commission.�
That entity shall, upon approval of the division, expand on any initial license
granted by the division prior to entering into any such contract.� The approval
shall be in accordance with the terms and conditions set forth by the division.
���� h.��� If any provision of this
act, P.L.2018, c.33 (C.5:12A-10 et al.), or its application to any person or
circumstance, is held invalid, the invalidity shall not affect other provisions
or applications of this act which can be given effect without the invalid
provision or application, and to this end the provisions of this act are
severable.
���� i.���� An operator shall
promptly report to the division:
���� any criminal or disciplinary
proceedings commenced against the operator or its employees in connection with
the operations of the sports pool or online sports pool;
���� any abnormal betting activity
or patterns that may indicate a concern about the integrity of a sports event
or events;
���� any other conduct with the
potential to corrupt a betting outcome of a sports event for purposes of
financial gain, including but not limited to match fixing; and
���� suspicious or illegal wagering
activities, including the use of funds derived from illegal activity, wagers to
conceal or launder funds derived from illegal activity, use of agents to place
wagers, or use of false identification.
���� The division is authorized to
share any information under this section with any law enforcement entity, team,
sports governing body, or regulatory agency the division deems appropriate.
���� j.���� An operator shall
maintain records of sports wagering operations in accordance with regulations
promulgated by the division.
���� k.��� A sports wagering
licensee may, in addition to having a sports wagering lounge, conduct wagering
on authorized sports events through one or more kiosks or self-service wagering
stations located within its facility.� Such self-service wagering stations located
at a casino may offer any game authorized under rules established by the
division.� Such self-service wagering stations located at a racetrack may offer
wagering only on authorized sports events and horse races.
���� l.���� All wagers on sports
events authorized under this provision shall be initiated, received and
otherwise made within this State unless otherwise determined by the division in
accordance with applicable federal and State laws.� Consistent with the intent
of the United States Congress as articulated in the Unlawful Internet Gambling
Enforcement Act of 2006 (31 U.S.C. s.5361 et seq.), the intermediate routing of
electronic data relating to a lawful intrastate wager authorized under this
provision shall not determine the location or locations in which such wager is
initiated, received or otherwise made.
���� m.�� A sports wagering
licensee shall not accept any wager on any sports event unless the sports event
has been approved for wagering by the director.� Except as otherwise provided
in this subsection, no sports event shall be approved for wagering unless the director
has certified that the sports event has appropriate policies and procedures to
monitor the integrity of the athletes or competitors.� In the absence of such
certification, the director shall impose a wager limit of not more than $100 or
a win limit of $500, whichever is greater, on the amount permitted to be
wagered or won on such competitions or contests by any individual.
����
n.��� (1)� A sports
wagering licensee shall not offer or accept any wager on a micro bet
1
through
an online sports pool.� A sports wagering licensee shall only accept a wager on
a micro bet from persons physically present in a sports wagering lounge or
through self-service wagering machines located in its facility as authorized by
the agency issuing the sports wagering license
1
.
����
(2)� Any licensee or person
who violates the prohibition set forth in paragraph (1) of this subsection
shall be guilty of a disorderly persons offense and shall be fined not less
than $500 and not more than $1,000 per offense.� Each wager offered or accepted
shall constitute a separate offense.
(cf: P.L.2021, c.350, s.1)
���� 4.��� This act shall take
effect immediately.